5 Best Large-Cap Stocks to Buy According to Columbus Hill Capital Management

4. Wells Fargo & Company (NYSE:WFC)

Columbus Hill Capital Management’s Stake Value: $42,682,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 5.1%
Number of Hedge Fund Holders: 94

Wells Fargo & Company (NYSE:WFC), an American multinational financial services company, announced its Q3 results on October 14. The company posted a GAAP EPS of $1.17, beating the estimates by $0.07. With revenue of $18.8 billion in Q3, Wells Fargo & Company (NYSE:WFC) is one of the best large-cap stocks according to Columbus Hill Capital Management.

On October 26, Wells Fargo & Company (NYSE:WFC) announced a quarterly dividend of $0.20 per share, yielding 1.58%. As of Q2, Eagle Capital Management is the company’s largest shareholder, with shares worth $1.5 billion. In addition to this, 94 hedge funds tracked by Insider Monkey reported owning stakes in Wells Fargo & Company (NYSE:WFC) in Q2, compared with 96 in the previous quarter. The total value of these stakes is over $7 billion.

In Q2, Columbus Hill owns 942,418 shares in Wells Fargo & Company (NYSE:WFC), valued at $42.6 million. The company accounts for 5.1% of the hedge fund’s 13F portfolio. Recently, Jefferies raised its price target on Wells Fargo & Company (NYSE:WFC) to $57, with a Buy rating on the shares.

L1 Capital mentioned Wells Fargo & Company (NYSE:WFC) in its Q2 2021 investor letter. Here is what the firm has to say:

“Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”